Chinese commercial vehicle giant Beiqi Foton Motor has unveiled a plan to establish a third joint venture with ZF Group, a German auto parts maker, Yicai Global reported on February 10.
The companies will build a plant in Jiaxing, Zhejiang province, China, to produce automatic transmissions for medium trucks, the Beijing-based company said in a statement last night. The first phase of the project will reach a design capacity of 55,000 units per year next year, while the schedule for the second phase will be adjusted based on market and sales conditions, the company added.
Foton did not disclose the full cost of the project, but said the plant’s fixed asset investment would be 130 million yuan ($19.2 million). The proportion of the shares of the two companies will be determined later, based on the share of the plant’s sales to Foton and third parties.
ZF’s medium-size truck gearboxes have a strong competitive advantage in China, and the plant will help Foton increase its competitiveness in this market segment, reduce production costs and ensure a stable supply of key parts, he said. Photon.
Foton and ZF already have two factories in Jiaxing. The former, in which Foton owns 60%, has an annual production capacity of 320,000 light vehicle transmissions. The second, in which the company owns 49%, can produce 190,000 heavy-duty truck gearboxes a year.
Foton also has a joint commercial vehicle manufacturing plant with the Mercedes-Benz Group, according to the Chinese company’s website.
Source: Rossa Primavera
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